Some recent developments that took place in Union Budget 2019 presented by Mrs Nirmala Sitharaman (Finance Minister) on 06th of July 2019.Here are the Budget Highlights.

Personal Tax

No changes in Tax Slabs.

Income
(Rs.)

Rate of
Tax (FY 2019-20)

Upto
2,50,000

Nil

2,50,001
– 5,00,000

5%

5,00,001
– 10,00,000

20%

10,00,001
and above

30%

Rebate under Section 87A remains unchanged for a resident individual (whose income does not exceed 5,00,000). The amount of rebate is 100% of income tax calculated before education cess or 12,500 whichever is less.

Increase in surcharge by 10% and 12% on High Net-worth Individuals (HNIs) with income between Rs. 2 – 5 crores and greater than Rs. 5 crores a year, respectively

Income
(Rs)

Proposed
Rate (FY 2019-20)

Old
Rate
(FY 2018-19)

Net
Increase (For 30% Slab) in Effective Tax Rate

Upto 50
Lakhs

Nil

Nil

Nil

50 Lakhs
to 1 Crore

10%

10%

Nil

1 Crore
to 2 Crore

15%

15%

Nil

2 Crore
to 5 Crore

25%

15%

39% –
35.88% = 3.12%

Above 5
Crore

37%

15%

42.744%-35.88% = 6.86

Online application form shall be introduced to determine TDS on payment to
non-residents u/s 195.

Aadhar card can now be quoted in place of PAN.

PAN will be made inoperative if not linked with Aadhar.

Faceless e-assessment with no human interface to be launched.

Deduction in respect of interest up to ₹350000 is available in case of
loan taken for first residential house property having stamp duty value of less
than 45 lakh under affordable housing scheme.

Deduction upto ₹150000 shall be available in respect of interest on loan
taken for purchase of electric vehicle.

60% (Earlier 40%) of amount receivable under national pension scheme
shall be exempt from tax.

Gifts
made to person resident outside India shall be deemed as income arisen in India

TDS @ 5% to
be deducted by Individual & HUF on the sum, or the aggregate of sums, paid
or credited in a year if such sum or aggregate of such sums, exceeds ₹50 Lakh in
a year to resident contractor & professional for services used for his
personal use.

Prefilled
tax returns forms enumerating salary, bank interest, capital gain from
securities and dividends, etc., will be made available for taxpayers.

Mandatory
filing of ITR for persons who enter into certain high value transactions (even
if their income is less than the maximum amounts not chargeable to tax]: ‐

has deposited more than one crore rupees in one or more current account;
or

has incurred expenditure of more than two lakh rupees for travel to a
foreign country; or

has incurred expenditure of more than one lakh rupees on electricity; or

fulfils such other prescribed conditions, as may be prescribed.

a person who is claiming such rollover benefits on investment in a house
or a bond or other assets, under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA
and 54GB of the Act.

Proposed
to amend section 140A as to provide that computation of tax liability shall be
made after allowing relief under section 89.

Corporate Tax

Corporate tax shall be levied at the rate of 25% where company has total
turnover or receipts not exceeding ₹400cr in FY 2017-18

Composition taxpayers to furnish annual return along with quarterly
payment of taxes; and other specified taxpayers may be given the option for
quarterly or monthly furnishing of returns and payment of taxes under the
proposed new return system.

Government has provided facility to transfer an amount from one (major
or minor) head to another (major or minor) head and between centre and state in
the electronic cash ledger of registered person.

Necessary amendment has been proposed for Single Point of Refund System.

Retrospective Exemption has been provided to “Uranium Ore Concentrate”

Customs and Basic Excise Duty

Departure manifest can also be furnished to a person notified by the Central Government, in addition to the person-in charge of the conveyance.

The custody of seized goods could be given to certain person where it is not practicable to seize such goods. Also, now proper officer can provisionally attach any bank account for safeguarding the government revenue and prevention of smuggling, for a period not exceeding six months.